Concept explainers
(a)
To calculate: The aggressive growth if Justin Jones has an amount of
(b)
To calculate: The growth if Justin Jones has an amount of
(c)
To calculate: The growth & income if Justin Jones has an amount of
(d)
To calculate: The income if Justin Jones has an amount of
(e)
To calculate: The cash if Justin Jones has an amount of
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Check out a sample textbook solutionChapter 13 Solutions
Mathematical Ideas (13th Edition) - Standalone book
- Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Fund Yield by Asset Class Small Cap Mid Cap Large Cap Fund Yield (%) Fund Yield (%) Fund Yield (%) Explorer Value 2.27 Capital Value 0.96 Equity Income 3.24 Small-Cap Value Index Admiral 2.46 Mid-Cap Value Index Admiral 2.24 High Dividend Yield Index 3.50 Small-Cap Index Admiral Shares 1.49 Extended Market Index Admiral Shares 1.22 500 Index Admiral Shares 2.24 Strategic Small-Cap Equity 0.43 Mid-Cap Index Admiral Shares 1.52 Diversified Equity 1.23 Explorer 0.17 Mid-Cap Growth 2.18 FTSE Social Index 1.42 Small-Cap Growth Index Admiral 0.21 Capital Value 0.32 Growth Equity 0.31 Explorer Value 0.36 Strategic Equity 1.54 U.S. Growth 0.37 Small-Cap ETF 1.44 Capital Opportunity Admiral Shares 1.1 Windsor 1.64 sum of squares for treatments ≈ 2.0227 sum of squares for error Step 1 of 2: What are the degrees of freedom associated with the sum of squares for treatments?…arrow_forwardConsider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 2.93 2.46 1.49 2.91 0.17 0.21 2.67 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 2.73 1.22 1.52 1.9 0.32 1.54 1.44 sum of squares for treatments≈ 0.6898 sum of squares for error 22.3436 Step 2 of 2: Find the mean square for error. Round your answer to two decimal places, if necessary. Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 2.73 1.23 1.42 0.58 0.37…arrow_forwardConsider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 2.93 2.46 1.49 2.91 0.17 0.21 2.67 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 2.73 1.22 1.52 1.9 0.32 1.54 1.44 sum of squares for treatments≈ 0.6898 sum of squares for error 22.3436 Step 1 of 2: What are the degrees of freedom for the sum of squares for error? Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 2.73 1.23 1.42 0.58 0.37 1.64arrow_forward
- You do not need a lot of money to invest in a mutual fund. However, if you decide to put some money into an investment, you are usually advised to leave it in for (at least) several years. Why? Because good years tend to cancel out bad years, giving you a better overall return with less risk. To see what we mean, let's use a 3-year moving average on the Calvert Social Balanced Fund (a socially responsible fund). Year 1 2 3 4 5 6 7 8 9 10 11 % Return 1.78 17.79 7.46 5.95 −4.74 25.85 9.03 18.92 17.49 6.80 −2.38 (a) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the annual return for all 11 years. (Round your answers to two decimal places.) x = % s = % (b) To compute a 3-year moving average for 1992, we take the data values for year 3 and the prior 2 years and average them. To compute a 3-year moving average for year 4, we take the data values for year 4 and the prior 2 years and average them. Verify that the…arrow_forwardConsider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 1.36 2.46 1.49 1.18 0.17 0.21 2.85 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 1.15 1.22 1.52 0.93 0.32 1.54 1.64 sum of squares for treatments≈ 1.4369 sum of squares for error 17.8020 Step 1 of 2: What are the degrees of freedom associated with the sum of squares for treatments? Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 1.15 1.23 1.42 0.24 0.37…arrow_forwardMoney markets are markets for Foreign stocks. Consumer automobile loans. U.S. stocks. Short-term debt securities. Long-term bonds.arrow_forward
- Why do the results imply that long term investing is less risky than short term investingarrow_forwardInvesting: Inverse ETFS (Exchange Traded Funds) Inverse ETFS, sometimes referred to as "bear market" or "short" funds, are designed to deliver the opposite of the performance of the index or category they track, and so can be used by traders to bet against the stock market. The following table shows the performance of three such funds as of August 5, 2015.t Year-to-Date Loss (%) MYY (ProShares Short Midcap 400) 6 SH (ProShares Short S&P 500) 5 REW (ProShares UltraShort Technology) 7 You invested a total of $6,000 in the three funds at the beginning of 2011, including an equal amount in MYY and SH. Your total year-to-date loss amounted to $360. How much did you invest in each of the three funds? MYY $ SH REW $ %24 %24 %24arrow_forwardYou are also given the following table of :average returns over the last 50 years T-Bills T-Bonds Stocks GeometricArithmetic GeometricArithmetic GeometricArithmetic 0.037 0.042 0.059 0.064 0.108 0.117 If you were asked to compute the equity risk premium for Steel Products, using the historical approach, what would your best estimate be? The largest investor in Steel Products is the owner/founder who owns 20% of the stock. Is she also the marginal investor in this stock? If your answer is yes write 1 and if your answer is No write 2 in the box.arrow_forward
- ] Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Fund Yield by Asset Class Small Cap Mid Cap Large Cap Fund Yield (%) Fund Yield (%) Fund Yield (%) Explorer Value 1.22 Capital Value 0.96 Equity Income 3.24 Small-Cap Value Index Admiral 2.46 Mid-Cap Value Index Admiral 0.52 High Dividend Yield Index 3.50 Small-Cap Index Admiral Shares 1.49 Extended Market Index Admiral Shares 1.22 500 Index Admiral Shares 0.52 Strategic Small-Cap Equity 2.61 Mid-Cap Index Admiral Shares 1.52 Diversified Equity 1.23 Explorer 0.17 Mid-Cap Growth 0.82 FTSE Social Index 1.42 Small-Cap Growth Index Admiral 0.21 Capital Value 0.32 Growth Equity 1.42 Explorer Value 1.32 Strategic Equity 1.54 U.S. Growth 0.37 Small-Cap ETF 1.44 Capital Opportunity Admiral Shares 1.27 Windsor 1.64 sum of squares for treatmentssum of squares for error≈1.7894≈15.7229 Step 1 of 2 : What are the degrees of freedom…arrow_forwardMore than 50,000 state and local governments and their agencies borrow money by issuing municipal bonds to build, repair, or improve schools, streets, highways, hospitals, sewer systems, and so on. When the federal income tax law was adopted in 1913, interest on municipal bonds was excluded from federal taxation. As a result, municipal bond investors are willing to accept lower yields than those they can obtain from taxable bonds. As part of your portfolio, you are considering investing $80,000 in bonds. You have the choice of investing in tax-exempt municipal bonds yielding 2.75% or corporate bonds yielding 4% in taxable interest income. (a) What is the annual interest income (in $) and tax status of the municipal bond investment? $ (b) What is the annual interest income (in $) and tax status of the corporate bond investment? $ (c) If you are in the 30% marginal tax bracket for federal income taxes and your state and local taxes on that income amount to an…arrow_forwardMore than 50,000 state and local governments and their agencies borrow money by issuing municipal bonds to build, repair, or improve schools, streets, highways, hospitals, sewer systems, and so on. When the federal income tax law was adopted in 1913, interest on municipal bonds was excluded from federal taxation. As a result, municipal bond investors are willing to accept lower yields than those they can obtain from taxable bonds. As part of your portfolio, you are considering investing $80,000 in bonds. You have the choice of investing in tax-exempt municipal bonds yielding 3.75% or corporate bonds yielding 5% in taxable interest income. (a) What is the annual interest income (in $) and tax status of the municipal bond investment? 2$ ---Select--- (b) What is the annual interest income (in $) and tax status of the corporate bond investment? 2$ ---Select---▼ (c) If you are in the 28% marginal tax bracket for federal income taxes and your state and local taxes on that income amount to an…arrow_forward
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